Doverie Obedinen Holding buys nation's no.3 health insurer

Doverie Obedinen Holding buys nation's no.3 health insurer

The local Doverie Obedinen Holding (DOH) has acquired for an undisclosed amount a 90% stake in Medico 21, the nation's third largest health insurance fund, the company said in an official statement posted on www.x3news.com.

DOH already owns the local Doverie health insurance fund.

The deal aims to consolidate the local health insurance market ahead of industry reforms that would require brawnier structures able to provide superior service, said Ognian Donev, deputy chairman of the DOH supervisory board.

The deal, bankrolled with company funds, increases DOH's market share to 16.55%.

It is only a matter of time before the holding merges the two health insurers, said Donev. It would be the first consolidation on the market which currently accommodates 16 health insurance companies.

A Doverie/Medico 21 structure would replace DOM Zdrave as the nation's second-largest health insurer in terms of market share.

Generali Zakrila is well ahead of the competition with 41.14%.

Donev and the Sopharma group are among the key DOH shareholders. Darik Radio owner Radosvet Radev also controls a significant DOH stake.